Business News of Thursday, 3 January 2019
Some stakeholders in the banking sector are expecting the Bank of Ghana to announce the list of banks that have met the minimum capital requirement to end speculations in the sector.
At the last press conference for 2018 to announce the policy rate, the governor of the Bank of Ghana, Dr. Ernest Addison stated that about 22 banks had met the minimum capital requirement,
But some new reports indicate that the number is set to increase as government is expected to bailout some six (6) indigenous banks with an amount of GHC2 Billion Cedis to ensure that they meet the minimum capital requirement.
Banking Consultant, Richmond Atuahene in an interview with Citi Business News described the possible bailout of the six indigenous banks by government as a step in the right direction but called on the central bank to publish the names.
“We are not the first country and we shall not be the last country. You know when we get to a certain position, where the systemic or the contingent effect will be greater for not being able to raise the capital the impact would have been very very dangerous”.
“So I think like the Minister of Finance said, I think the President has also said the same thing, if they determine and have the criteria for selecting a well governed bank, I think it will be in the right direction. So for me it’s the criteria, and how it will be structured and how government will exit, what timeframe will it use, apart from that it will be a step in the right direction.”
Richmond Atuahene also stated that even though it’s important to bail some banks out, it is critical that politicians are not appointed to the boards of such banks to ensure their efficiency and overall success.
“For me they need not appoint political people to be on the boards. They can go out and get people to come and run it. They can then give these people clear objectives on the exit plan for example in 3 or 4 years. This will go a long way to ensure efficiency and also make sure that the running of these banks have nothing to do with government.”
On the number of banks that have met the minimum capital requirement, banking consultant Nana Otuo Acheampong stressed that the Bank of Ghana will must make the announcement soon after January1, 2019.
“So if anything, they will make an announcement after the New Year, 2nd or 3rd January as to the banks that have completed and then what’s happening to those who have not being able to meet”.